The Bottom is Here? Bitcoin Price Hits $3000 then Storms to $3600

The Bottom is Here? Bitcoin Price Hits $3000 then Storms to $3600

Introduction

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Yesterday’s crash continued unabated today, and it reached epic proportions as investors dumped all the major coins with both hands, before several Chinese exchanges (like OKcoin, Huobi) confirmed their (only) partial closure. The prior panic selling drove BTC below the $3150 support, then $3000 and the June all-time highs. With the coin losing more than 40% top-to-bottom the end of the decline could be very close and the first major rally already started today, as Bitcoin’s price catapulted to $3600 very quickly and altcoin prices also soared off their panic lows.

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While we couldn’t be sure that a major bottom is already formed, and a re-test usually comes after such a move, investors now should be buying the short-term dips. The deep correction that we expected cleared the overbought readings of the prior monster rally, and sentiment is getting bearish enough for at least a tradable rally.

The other major coins were hit even harder amid the broad liquidation, and the total market capitalization of the segment crashed below $100 billion, marking a loss of $80 billion in two weeks. Ethereum got close to the $200 (-50% off the all-time high) level, Litecoin spiked to $35 for an almost 60% plunge, while Ripple touched the $0.15 level. The selling pressure reached yesterday’s relatively strong coins as well, as IOTA fell below primary support, while Monero also declined by 20+%. As the market might be at a major turning point, let’s look at the short-term charts before the weekend.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH followed BTC higher off the panic lows, and got back to the next major $235-$250 support/resistance level. The coin is getting long-term oversold, and today’s low could mark the end of the correction, although a re-test of the lows is possible. Investors should now be adding to their positions on the short-term dips. Support is found near $200 and around $175, while resistance is ahead at $280 and $300.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin spiked below $50, but it’s now back near the crucial level, after it briefly tested the long-term base formation near $35. The coin is very likely hit a panic bottom today and although more sideways action is probably ahead, the short-term dips should be bought by investors, while traders should wait for a confirmed trend change in the volatile environment. Support is still found at $47, $44, and $38 while resistance is ahead at $56, and $64.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash held up well during the crash, but it still got close to the $220 level and the prior highs, after dipping below the $265 support. The coin is now back above the key level, but we expect more volatility and a possible re-test of the lows before a sustained move higher. That said, the long-term picture is encouraging, and investors should be looking for buying opportunities during the bottoming process. Strong support is still found near $220, with resistance ahead near $300.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP found support in the long-term base formation and it is now back near the top of the pattern at the $0.18 resistance. The declining short-term is still intact, but the coin could be among the first coins to head higher after the end of the correction, and long-term investors should still add to their positions here. Support is still found at $0.16, while resistance is ahead at $0.18, around the $0.20 level, and near $0.22.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic experienced liquidation below the key $13.50 level, and it plunged to the next long-term support near $9 on huge volume. The coin has to get back above the prior support level, or it will remain in a declining long-term trend. Until the recovery, short-term traders should wait with opening new positions, but the current levels are still attractive for long-term investors.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remained relatively strong amid the sell-off and it is trading back above the $80 support, after spiking below the key level today in early trading. While volatility is still expected to remain high, today’s low is likely the final bottom of the correction and investors could already add to their holdings. Resistance is ahead at 4100, $125, and near the all-time high above $150, while support is at $80 and $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO hit the support level near $13 before the strong rebound, and it recovered above the $16.50 support/resistance. Today’s bottom is likely to be a tradable one after the crash. We expect only brief moves below $16.50, and investors should be adding to their positions now. Short-term traders should still wait until a new uptrend is established as volatility will likely remain high. Resistance levels are ahead at $22, $25, and $30, while support is a found at $13, and $11.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA held above the $0.35 level as we expected, and it is now trading above the line-in-the send support zone between the $0.45 and $0.48 levels, confirming the short-term relative strength of the coin. The declining trend is still intact in the coin, but the long-term picture is encouraging and investors could still add to their positions. Resistance is still ahead near $0.65, with key support at $0.35.

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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